Continental has raised its outlook for the adjusted EBIT margin and adjusted free cash flow after a third quarter in which its tyre business did very well, led by Europe and Asia, the company said. Handelsblatt reports that the shares are rising significantly in pre-market trading.

Third-quarter adjusted EBIT was €514m, against €482m a year earlier. The adjusted EBIT margin was 14.9%, against 13.9%. Finimize reports that the profit beat analyst consensus of €480m and that the full-year margin range moves to 13.4% to 14% from 12% to 13.5%. Continental said replacement markets in the Americas were weak. Sales were €3.5bn, down 1.5% organically. The outlook excludes ContiTech, which Continental has left out since August 4.

The weak spot is cash. Adjusted free cash flow was €31m, down 69.0%.

That is a position few German auto suppliers share. BMW now expects a 2026 automotive EBIT margin of -0.5% to 0.5%, against 1% to 3% in its June guidance, Investing.com reported.

A tyre maker can pass costs to customers somewhat independently of how many cars are built. That suggests suppliers tied to replacement demand can hold up better than those tied to carmakers' output, even while the wider market stays in crisis.

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